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28 Sep 2019
Each of the four independent situations below describes acapital lease in which annual lease payments are payable at thebeginning of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) fromthe tables provided.)
Situation 1 2 3 4 Lease term (years) 4 7 5 8 Lessorâs rate of return 10 % 11 % 9 % 12 % Fairvalue of leased asset $ 61,000 $ 361,000 $ 86,000 $ 476,000 Lessorâs cost of leased asset $ 61,000 $ 361,000 $ 56,000 $ 476,000 Residual value: Guaranteed by lessee 0 $ 61,000 0 $ 41,000 Unguaranteed 0 0 $ 18,000 $ 26,000
Determine theannual lease payments for each situation:
Each of the four independent situations below describes acapital lease in which annual lease payments are payable at thebeginning of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) fromthe tables provided.)
Situation | ||||||||||||||||||
1 | 2 | 3 | 4 | |||||||||||||||
Lease term (years) | 4 | 7 | 5 | 8 | ||||||||||||||
Lessorâs rate of return | 10 | % | 11 | % | 9 | % | 12 | % | ||||||||||
Fairvalue of leased asset | $ | 61,000 | $ | 361,000 | $ | 86,000 | $ | 476,000 | ||||||||||
Lessorâs cost of leased asset | $ | 61,000 | $ | 361,000 | $ | 56,000 | $ | 476,000 | ||||||||||
Residual value: | ||||||||||||||||||
Guaranteed by lessee | 0 | $ | 61,000 | 0 | $ | 41,000 | ||||||||||||
Unguaranteed | 0 | 0 | $ | 18,000 | $ | 26,000 | ||||||||||||
Determine theannual lease payments for each situation: |
Keith LeannonLv2
28 Sep 2019